Trading analysis

EUR/USD (a 4-hour chart)

General overview

The stock market carry trade transactions closure is supporting the single European currency amid the ECB ultra-loose monetary policy. On the contrary, the commodity market dynamics indicates the demand for the dollar: oil and industrial metals are in the "red zone".

Investors' attention is directed to the August US GDP final data (the previous value was 3.7% q/q, the forecast was 3.7% q/q). In fact it is 3.9% q/q.

The price resumed its downward movement. After testing the support level of 1.1150 the bears managed to break it. However, it was a short-term breakout and the bulls managed to take north course and return the instrument above this mark.The price is finding the first support at 1.1150, the next one is 1.1050. The price is finding the first resistance at 1.1260, the next one is at 1.1325.

There is a confirmed and a strong sell signal. The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen shows a horizontal movement and the Kijun-sen shows a downward movement and form a “Golden Cross”. The downward movement will be until the price is under the Cloud.

The MACD indicator is in a negative territory. The price is correcting.

Trading recommendations

After the support level of 1.1050 breakthrough down the way to the support 1.0925 will be opened.

Trading in financial markets involves substantial risks, including complete possible loss of investment capital. This activity is not suitable for all investors. High leverage increases the risk (Risk Disclosure).